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The outlook for global labour markets has worsened in recent months and if current trends proceed, vacancies will grow more scarce while global jobs growth will deteriorate significantly throughout the remainder of the yr, in line with a new report by the International Labour Organization (ILO).
Estimates from ILO for the third quarter of 2022, indicate that the extent of hours worked was 1.5 per cent below pre-pandemic levels, amounting to a deficit of 40 million full-time jobs.
Inflation up, wages down
The tenth edition of the Monitor on the World of Work confirms that rising inflation is causing real wages to fall in lots of countries.
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This comes on top of serious declines in income throughout the COVID-19 crisis, which affected low-income groups most in lots of countries.
The report finds that labour market inequalities are more likely to increase, contributing to a continued divergence between developed and developing economies.
In response to the Monitor, a set of multiple and overlapping crises, compounded by the Ukraine war and subsequent negative spill-over effects, have materialized over 2022 which have impacted the world of labor deeply.
Food and energy in flux
The consequences are being felt through food and energy inflation, declining real wages, growing inequality, shrinking policy options and better debt in developing countries.
A slowdown in economic growth and aggregate demand may also reduce demand for employees as uncertainty and worsening expectations affect hiring.
The Monitor finds that worsening labour market conditions are affecting each employment creation and the standard of jobs, mentioning that there may be already data that means a pointy labour market slowdown.
Originally of 2022, the number of world hours worked was recovering strongly, notably in higher-skilled occupations and amongst women.
Nonetheless, this trend was driven by a rise in informal jobs, jeopardizing 15 years of progress trend towards formalization.
Solidarity, to finish war
ILO says that a powerful commitment is required to initiatives corresponding to the UN Global Accelerator on Jobs and Social Protection; its objective is to create 400 million jobs and extend support to the 4 billion individuals who don’t have anything to fall back on should they fall sick or get hurt at work.
A rapid end to the conflict in Ukraine, as demanded within the resolutions of the ILO Governing Body, would further contribute to improving the worldwide employment situation, the UN agency noted.
“Tackling this deeply worrying global employment situation, and stopping a major global labour market downturn, would require comprehensive, integrated and balanced policies each nationally and globally,” said ILO Director-General, Gilbert Houngbo.
“We want the implementation of a broad set of policy tools, including interventions in the costs of public goods; the rechannelling of windfall profits; strengthening income security through social protection; increasing income support; and targeted measures to help probably the most vulnerable people and enterprises.”
SOURCE: UN News
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